1 / 17

TRENDS IN CURRENCY PROCESSING Best Practices for Using Technology to Improve Your Cash Logistics

TRENDS IN CURRENCY PROCESSING Best Practices for Using Technology to Improve Your Cash Logistics. HISTORY OF CURRENCY. U.S. Treasury Department’s Bureau of Engraving and Printing There are 35 million bills of all denominations produced each day,

star
Download Presentation

TRENDS IN CURRENCY PROCESSING Best Practices for Using Technology to Improve Your Cash Logistics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TRENDS IN CURRENCY PROCESSINGBest Practices for Using Technology to Improve Your Cash Logistics

  2. HISTORY OF CURRENCY • U.S. Treasury Department’s Bureau of Engraving and Printing There are 35 million bills of all denominations produced each day, Rough value of daily bills produced is around $1.5 billion It costs approximately 8.7 cents for each bill 0.1% of all money in circulation is fake or around $780 million 90% of all bills are printed to replace destroyed or withdrawn

  3. CHARACTERISTICS OF CURRENCY • Several benefits of using currency include: Easy medium of exchange Tangible and easy to validate its worth – store of value Retains anonymity of the consumer Allows customers privacy of personal accounts

  4. CASH IS PROBABLY NOT THE FUTURE… • 98% consumer adoption • Phone vs. wallet • Bitcoin-- $1.3B in 2012transactions1 1Source: bitcoin.org

  5. BUT, IT’S NOT GOING AWAY SOON… Currency in Circulation Source: Federal Reserve Bank of San Francisco, 2012 Annual Report

  6. TRENDS IN CURRENCY USE 2008 2011 Cash is used more often… Monthly cash transactions 21% 28% Median cash holdings …carried around in larger amounts… $69 $75 Median monthly cash withdrawal …and spent faster! $179 $220 Source: Federal Reserve Bank of Boston 2011 Survey of Consumer Payment Choice Oliver Wyman analysis

  7. NUMBER OF PAYMENTS BY INSTRUMENT Source: 2010 Survey of Consumer Payment Choice

  8. RETAIL TRENDS Technology has made retail receivables more sophisticated • Debit and Credit Card Growth Prepaid Cards • Emerging Mobile Payments • Cash • Prepaid Physical handling costs Minimal integration Significant idle cash Prepaid Cards Check Imaging Back Office Conversion Self Check Out …yet retailers’ cash handling has remained mostly unchanged

  9. INNOVATION IN CURRENCY LOGISTICS Ledgers by hand Drive Thru ATM

  10. INNOVATION? GUNS AND WHEELS

  11. THE REMOTE CASH CAPTURE VISION Fifth Third’s Commitment to Currency Logistics Fifth Third’s Dedication… Fifth Third invests in a team of industry experts & changes the course of the market Fifth Third’s Innovation... Fifth Third becomes pioneer & market leader for providing provisional credit in the Smart Safe industry Fifth Third’s Vision... Fifth Third expands its view & commitment to the market through it’s CPS strategy & managed services model Fifth Third introduces a device management strategy will revolutionize the availability of data & how the network is managed Market adoption grows & Fifth Third expands business model with Garda & Loomis. Fifth Third captures 70% of the provisional credit market Fifth Third introduces the CPS10K, CPS2K & CPS1K to address new market segments through a managed services model Fifth Third develops a strong partnership with Brinks & begins to change the dynamics of the Smart Safe industry Fifth Third develops a strategy to expand the market & address key service limitations through a managed service model 2007 2009 2011 2012 2013 2014 CPS RCM

  12. Closed Loop Cash Management • Remote Cash Capture provides daily access to cash, improves liquidity, eases reconciliation, and reduces operating expenses, while cash receipts physically reside in the safe • Deposit data is recorded and aggregated for transmission to Fifth Third Bank daily for posting to a clientsaccount. • Cash receipts are deposited into an on-site smart safe. • Cashiers collect payments throughout the course of their shift. • The safe contents are picked up by a courier on a prearranged schedule and transported to a secure cash processing facility. • Mitigate risk of fraud and theft by securing cash at the earliest opportunity. • Monitor cash flow activity, including deposit and change order detail by location utilizing a BAI file and Web-based reporting. Treasury Operations Loss Prevention

  13. BEST PRACTICES • Focus Staff on Core Business Activities that Improve Sales Increase floor presence of management Increase throughput and sales per man hour Utilize Cash Handling Technology • Reduce non-service administrative labor • Minimize cash handling redundancy • Optimize device placement • Create a closed loop • “If more focus was around readiness of store inventory and having the available supply for customer demand, an increase in sales would result.”1 • “Store labor is the 2nd largest expense for retailers, often accounting for 10-20% of sales and sometimes for more than 50% of operating costs – labor planning, execution, and retail store performance.”2 1Source: http://www.oracle.com/us/industries/retail/redesign-customer-experience-wp-177586.pdf 2Source: http://faculty.chicagobooth.edu/workshops/omscience/archive/pdf/Traffic-Product.pdf

  14. BEST PRACTICES • Improve Safety and Security • Eliminate Bank Runs • Reduce Armored Frequency and gain Provisional Credit • Reduce Till Balance & Deposit Exposure • Reallocate or Extract Labor Cost Eliminate cash rooms or vaults Impact on front end associates • “Employee theft represents 43% of the total retail annual loss of over $33 billion, the highest contributor to overall retail loss.”1 1. Source: http://blog.lpinnovations.com/Loss-Prevention-Leadership/bid/46024/Employee-theft-higher-in-the-United-States; 2009 National Retail Security Survey

  15. BEST PRACTICES • Increase Visibility of Cash Over (Short) Performance Enhance accountability Improve audit processes • Improve Risk Management Utilize time delay functionality Manage withdrawal limits Reduce Operating Supplies Eliminate Multiple Banks Improved Reconciliation

  16. CURRENCY PROCESSING SOLUTIONS (CPS) • CLIENT SUCCESS – Quick Service Restaurant • Background • Fifth Third partnered with quick service restaurant chain to deploy remote cash capture technology across a national footprint • Results Achieved Eliminated need for bank runs, reducing labor costs by 1.13 hours per day Deposit prep reduction .41 hours per day Till reconciliation process reduced by 50%(+) Realized net impact of $2,679,400 in annual profit contribution

  17. CURRENCY PROCESSING SOLUTIONS (CPS) • CLIENT SUCCESS – Big Box Retail • Background • National big box retailer was seeking a new approach to eliminate its cash room and deploy its resources toward store sales activities • Results Achieved Reduced labor requirements by 6 daily hours Re-engineered processes with front end supervisors Deployed proof of concept that eliminated cash shortages Leveraged Series functionality for efficiencies in opening Developed deposit process to support register reconciliation Increases and Strips entered in POS prior to Recycler Established eFund process to ensure business continuity Integrated currency and coin solution Provided visibility to cash over (short) performance Returned $18,000 of vault funds per location to corporate

More Related